Ceasefire Market Surge Stocks Jump, Oil Drops After US-Iran Deal
A ceasefire market surge lifted global stocks on Monday. Investors reacted quickly to a deal between the United States and Iran. As a result, confidence improved across Asia Pacific markets. Japan’s Nikkei 225 jumped 5.5 percent in early trade. Meanwhile, South Korea’s Kospi surged nearly 5.7 percent. Taiwan and Australia also posted solid gains. However, Hong Kong’s Hang Seng Index lost momentum later. It trimmed most of its early rise. Even so, sentiment remained positive overall.
Oil Price Drop Sharply
Oil prices fell as tensions eased. Brent crude dropped about 4.5 percent below $83.40 per barrel. Therefore, markets expect lower inflation pressure soon. Analysts say cheaper oil could help central banks. For example, rate decisions may become easier this week. Many now watch the US Federal Reserve closely. According to experts, markets had already priced in some optimism. Still, official confirmation pushed stocks higher.
Leaders Confirm Ceasefire Deal
Donald Trump announced the deal on social media. He also ordered the reopening of the Strait of Hormuz. In addition, he removed the US naval blockade on Iranian ports. Iranian officials later confirmed the agreement. Meanwhile, Shehbaz Sharif said Pakistan helped mediate talks. He added that a formal signing will take place in Switzerland. Reports suggest the deal includes a halt to fighting. It may also ease sanctions on Iranian oil. In addition, billions in frozen assets could be released.
Recovery May Take Time
Despite the ceasefire market surge, challenges remain. The Strait of Hormuz has faced months of disruption. This caused a major supply shortfall globally. Experts warn recovery will not be quick. For instance, thousands of ships remain stuck in the region. Clearing them could take months. In addition, damaged infrastructure adds delays. Some fear hidden naval mines may still pose risks. Therefore, full normalisation may take longer than expected. Industry leaders also remain cautious. They question how quickly operations can restart. As a result, markets may stay sensitive to new updates.
